One of the provisions of the SECURE Act increased the Internal Revenue Service’s (IRS’) penalties on late 5500s. Under the SECURE Act, late filers that miss their late-filing deadline will face a daily penalty of $250 versus the $25-per-day penalty in effect before January 1, 2020. Likewise, the maximum penalty has increased ten-fold, from $15,000 to $150,000. That doesn’t even include the Department of Labor’s (DOL’s) penalties, which is well over $2,000 per day.
So if you have a late 5500, consider a filing with the DOL’s delinquent filer voluntary compliance program to save thousands and thousands of dollars.